2.1 A business has prepared a fixed budget for the coming financial year, as shown below: Fixed Budget Actual figures for the year Production = 2000 units Production = 3000 units Variable costs Variable costs Direct materials 6000 Direct materials 8500 Direct labour 4000 Direct labour 4500 Maintenance 1000 Maintenance 1400 Semi-variable costs Other costs 3600 Semi-variable costs Other costs 5000 Fixed costs Fixed costs Depreciation Rent and rates 2000 1500 Depreciation Rent and rates 2200 1600 Total costs 18100 Total costs 23200 As a result of increased demand, it has been decided to increase production by 50%. An updated flexible budget is required. You are asked to prepare this using the following cost behaviour information: Direct materials, direct labour and maintenance are considered as variable. Rent and rates and depreciation are fixed. Other costs are calculated as 1600 plus a variable cost of 1 per unit